Trends in Print and Mail

“All legislation, all government, all society is founded upon the principle of mutual concession, politeness, comity, courtesy; upon these everything is based...” – Henry Clay, American Statesman (1777-1852)

In late March, two members of Congress released a statement that unless immediate actions were taken, the US Postal Service (USPS) would run out of cash in June 2020. Their goal was to garner support for adding $25 billion in funding for the USPS as part of the CARES act.

When the stimulus bill was passed, it included provision to allow the USPS to borrow an additional $10 billion due to the COVID-19 crisis. Interestingly, the additional debt can only be used for operating expenses and not capital investments - like new delivery vehicles.

Since that vote, there’s been an explosion of articles and television interviews about the financial struggles of the USPS. It seems that every politician has suddenly developed a sincere concern for the future of the USPS and its ability to serve our country. Similarly, reporters, columnists and pundits are writing articles and delivering commentaries about the financial insolvency of the USPS.

On February 7, 2020, the Postal Regulatory Commission (PRC) issued Order Number 5422 – “Advance Notice of Proposed Rulemaking to Consider Regulations to Carry Out the Statutory Requirements of 39 U.S.C. 601”. It’s a brief document – only 10 pages – that opens up significant issues around the definition of “a letter”, the U.S. Postal Service’s (USPS) monopoly to deliver letters, and the universal service obligation (USO).

On Sunday, I received an email from a client concerned about his disaster recovery plans. In the first line of his message, he acknowledged it was the weekend and added, “Unfortunately my brain won’t allow me to take too much time off!”

We then exchanged some emails and texts, with plans for a call on Monday morning to review his options. I know he didn’t want to bother me on a Sunday, but he had to start working on the problem as soon as possible.

The Lexington Institute hosted a Capitol Hill Conference on Postal Reform. 
On Friday, March 6, 2020, The Lexington Institute hosted a Capitol Hill Conference on Postal Reform. With a packed room of legislative aides, mailing industry professionals and interested individuals, 12 speakers shared ideas on what has worked, what has failed, and what should be considered to reform the United States Postal Service (USPS).

The roster included:

In less than 9 weeks, leaders in the mailing industry will be gathering at the National Postal Forum (NPF) – April 26-29, 2020 at the beautiful Orlando World Center Marriott in Orlando, Florida.

The mailing industry continues to evolve, and mailing professionals need to stay informed to be successful. At the NPF, that knowledge may be gained in educational sessions, from the vendors in the exhibit hall, or from fellow professionals in the many networking opportunities. Different paths that all lead to success on the journey to innovation.

On December 5, 2019, the Postal Regulatory Commission (PRC) published Order 5337 – Proposed Rulemaking for USPS Rates. This was a follow-up to the proposed rules released in December, 2017. After hundreds of comments, changes to the PRC board membership, and a continued deterioration of the US Postal Service (USPS) financial situation, the PRC has made several key changes to their proposal.

Most of the articles and blog posts published immediately after the announcement focused solely on the authority to raise rates for market dominant products above the existing price cap. Under the Postal Accountability and Enhancement Act (PAEA), the annual increases in postage rates for market dominant prices is currently tied to the Consumer Price Index for Urban Customers (CPI-U). The price cap was intended as a check on rates and an incentive for the USPS to increase efficiencies.

However, there is significantly more than rate authority covered in the order.

Last April, during a House Oversight Committee hearing, Representative Mark Meadows (R-North Carolina) took Postmaster General (PMG) Brennan to task for not delivering a 10-year strategic plan to Congress that was promised to be handed over in January. A second delivery date was also missed. The congressman was not happy.

Representative Meadows had worked with his Democrat colleagues to draft bi-partisan postal reform bills. As he said, the PMG’s actions were turning an advocate into an adversary. At the end of the discussion, the Committee Chair, the late Representative Elijah Cummings, directed that the plan be delivered to the committee no later than July.

At that summer’s Mailers' Technical Advisory Committee (MTAC) meeting, PMG Brennan was asked when the strategic plan would be published. The PMG said that the Oversight Committee had the plan, and that it would be released to the industry “in due time”.

On Sunday, January 26, 2020, the new US Postal Service (USPS) postage rates and rules go into effect, so mailers need to act now to be properly prepared. For most mailers, the first day of mailing under the new rates will be Monday, January 27, 2020.

This rate case was announced on October 9, 2019. Set to go into effect on January 26, 2020, the new rates represent about a 1.9% increase over the current prices for mailing, or “Market Dominant” products and about a 4% increases for shipping, or “competitive” products.

It’s impossible to predict the future, but when there are storm clouds in the sky, you can be pretty sure it’s going to rain. Lightning and downpours can be seen in the distance, inching their way forward. We brace for the worst.

Of course, a good rain helps farmers grow crops. Watersheds and aquifers are refreshed, increasing the supply of clean water for our homes. Grasslands and forests are rejuvenated, staving off brutal fires.

There are clouds in the skies for the print-mail industry.

Before every play, a football team forms a huddle to call the next plan of action. In the best teams, players give feedback about what they’re seeing on the field, so the quarterback has the best information possible to make the right decision. When they break, everyone knows the objective, and their role in helping achieve that objective.

In businesses, teams should follow a similar pattern. At the start of each day, or shift, everyone on the team should come together for a briefing. We call this “the daily huddle”. It works for all types of organizations, and is especially helpful for print and mail operations.